The chief executive of North East software giant Sage Group has hailed strong investments in the business for driving up half-year revenues above the £1bn mark.
The Cobalt Business Park-based business saw statutory revenues rise 16% to top £1.087bn, while annualised recurring revenues increased 12% from £1.878bn to £2.1bn in the six months to March 31, driven by new customers adopting its products. Sage said underlying recurring revenue increased by 12% to £1.039bn, underpinned by strong Sage Business Cloud growth of 29% to £787m. A geographic breakdown of revenues showed the greatest uplift in North America, which jumped 28% from £376m to £483m.
Underlying operating profit increased by 14% to £227m and Ebitda increased by 13% to £275m. But statutory operating profit decreased by 23% to £157m due to the change in recurring and non recurring items, including a £49m one-off gain in the prior period relating to the disposal of Sage Switzerland.
